CEO Morning Brief

GSC to Launch GSC KL East Next Week, to Close GSC Central Square Sungai Petani by Early June

Publish date: Tue, 14 May 2024, 10:16 AM
0 22,992
TheEdge CEO Morning Brief
Golden Screen Cinemas (GSC) chief executive officer Koh Mei Lee said in March GSC was working on co-producing local movies on profit-sharing, with costs ranging between RM8 million and RM20 million for each production. (Photo by Shahrill Basri/The Edge)

KUALA LUMPUR (May 13): Golden Screen Cinemas (GSC), which is operated by Malaysian conglomerate PPB Group Bhd (KL:PPB), said on Monday it will launch a new outlet in the KL East Mall here, and close its outlet in the Central Square shopping centre in Sungai Petani, Kedah.

GSC KL East will be opened on May 20 with eight halls — including an Imax hall and the third PlayPark in Malaysia — while GSC Central Square Sungai Petani will be closed by early June, with its resources at the latter redeployed to the GSC Amanjaya Mall, which is less than 7km away.

GSC said these strategic plans are to increase its market share in key locations, and consolidate selected locations for operational efficiency.

"I am excited to share our unwavering commitment to elevating the moviegoer's experience through entertainment excellence. At GSC, we are dedicated to delivering unforgettable experiences that go beyond conventional norms," GSC chief executive officer Koh Mei Lee said in a statement.

"Through embracing technological advancements and fostering a culture of innovation, we ensure that every visit to our cinemas is an unparalleled journey tailored to the evolving preferences of our moviegoers," she added.

GSC operates the largest cinema chain in the country, with 520 screens at 55 locations in major cities nationwide.

The business is housed under the film exhibition and distribution segment of PPB Group, which contributed about RM570 million or 10% of the group's revenue for the financial year ended Dec 31, 2023 (FY2023), according to PPB Group's latest annual report.

The segment, however, suffered a larger net loss of RM120 million for FY2023, compared with RM17 million for FY2022, mainly due to the impairment of cinema operations and assets. The segment would still be in loss by RM8 million due to higher operating costs even if the impairments were excluded.

In March, the group said it was expecting a tough year ahead for its film exhibition and distribution business, as the Hollywood writers' guild strike had affected supply of content in the medium term. To offset the impact, GSC was shifting its focus to local and regional movies, including participating in local film production, to gain better control over the content at its cinemas.

At the time, Koh said GSC was working on co-producing local movies on profit-sharing, with costs ranging between RM8 million and RM20 million for each production.

Overall, PPB's FY2023 net profit fell 36.53% year-on-year to RM1.39 billion from RM2.2 billion, mainly on lower contributions from Wilmar International Ltd, as revenue dropped 7% to RM5.72 billion from RM6.15 billion a year ago.

The group's shares closed 14 sen or 0.90% higher at RM15.62 on Monday, giving it a market capitalisation of RM22.22 billion.

Source: TheEdge - 14 May 2024

Related Stocks
Be the first to like this. Showing 0 of 0 comments

Post a Comment